Nokia to enter PC industry with first netbook

(Agencies)
Updated: 2009-08-25 10:14

"Nokia will be hoping that its brand and knowledge of cellular channels will play to its strengths as it addresses this crowded, cut-throat segment," said Ben Wood, director of research at CCS Insight.

"At present we see Nokia's foray into the netbook market as a niche exercise in the context of its broader business."

Nokia's choice of Windows software surprised some analysts who had expected the company to use Linux in its first laptop.

Nokia's new netbook computer, the Booklet 3G, is seen at Nokia corporate headquarters in Helsinki August 24, 2009. [Agencies]

Analyst Neil Mawston from Strategy Analytics said the technology choices were a good win for the U.S. companies.

"We believe ARM and Symbian are among the main losers from the Nokia Booklet announcement," he said.

Shares in ARM were 0.2 percent lower at 1400 GMT, underperforming slightly firmer DJ Stoxx European technology shares index. Shares in Nokia were 1.6 percent stronger at 8.91 euros, while Microsoft was 0.6 percent firmer.

Nokia said it would unveil detailed specifications, market availability and pricing of its new device on Sept 2.

A source close to Nokia said the new netbook would use the upcoming Windows 7 operating system. Microsoft says a stripped-down version of Windows 7 will be introduced to netbooks the same time as its general release on October 22.

Local media reports in Taiwan have said that Compal, the world's No. 2 contract laptop PC maker, has pitched netbook models to Nokia, but there has been no official confirmation from either side.

Nokia declined to comment on the manufacturer it uses.

Most of the world's top electronics brands typically do their own design work, but outsource the manufacturing process to contract manufacturers such as Compal and its larger rival Quanta.

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